Washington Company is preparing its statement of cash flows using the indirect m

ID: 2407453 • Letter: W

Question

Washington Company is preparing its statement of cash flows using the indirect method. Refer to the following portion of the comparative balance? sheet:

Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Increasel(Decrease) Accounts Payable Accrued Liabilities Long -term Notes Payable Total Liabilities S9,000$5,000 1,400 57,000 68,000 $69,000 $74,400 ($4,000) 1,600 (11,000) ($5,400) 3,000 Additional information provided by the company includes the following 1. During 2019, the company repaid $38,000 of long-term notes payable 2. During 2019, the company borrowed $27,000 on a new long-term note payable Based on the above information only, what amount of net cash flow would be shown in the financing section of the statement of cash flows? OA. $65,000 O B. $11,000 O c. ($65,000) O D. (S11,000)

Explanation / Answer

Washington Company

Statement of Cash Flows (Indirect Method)

Particulars

Amount

Financing Activities

Proceeds from new long term note payable

$27,000

Repayment of Long term note payable

($38,000)

Cash Flow from Financing Activities

($11,000)

The Answer is D “ ($11,000) “

The Amount to be shown under financing activities section of the cash flow is ($11,000)